Monetary and fiscal policy turning more supportive

Policymakers’ concerns about the near-term outlook have become much more visible over the past couple of weeks, with weak Q2 growth and poor stock market performance triggering rate cuts and talk of increased fiscal support. Government borrowing has already reaccelerated recently, with spending likely to follow suit. This will mostly be directed toward investment. But officials have decided to devote a small portion of it to enhancing the consumer goods trade-in scheme, which will provide some support to sales of cars and home appliances.